Question

Which method of allocating resources grants an advantage to the wealthy who compete for the resource?
A.allocation by charity
B.allocation by lottery
C.allocation by merit
D.allocation by price

Answer 1

Explanation:

The methods used to allocate our scarce resources are: Market System, Brute Force, Queuing, Random Selection, Tradition, Equal Shares, Need, Planned Systems. is the system used by the U.S.A. to distribute the allocate scarce resources by letting the buyers and sellers choose what to put in the market.

Answer 2

Option D) allocation by price

Allocation by price  of allocating resources grants an advantage to the wealthy who compete for the resource

• The practise of assigning and managing resources in a way that meets an organization's strategic planning objectives is known as resource allocation. Allocating resources involves managing hard assets like hardware to maximise the usage of soft assets like human capital.
• Purchase price allocations assist in appropriately reflecting the value drivers for an acquired business and aid consumers of financial statements in understanding the value of each component of the acquired business. The fact that not all targets acquired are required to be recorded as business combinations must be emphasised.
• The purchase price allocation is a crucial factor in a transaction set up as an asset sale since it establishes the tax obligation of the sellers and the tax basis of the buyers in the assets they have purchased.
• The general rule is that in a non-stock transaction, the assets of the company should be purchased for their fair market worth. In order to ensure that neither party loses out as a result of the sale, the buyer and seller will negotiate how the purchase price for these assets will be split.

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